User Account

All Pages

Portion of total contract price recognized as revenue

Assignment Help Accounting Basics
Reference no: EM131591913

Question: (Recognition of Revenue on Long-Term Contract and Entries) Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2014, Hamilton began work under contract #E2-D2, which provided for a contract price of $2,200,000. Other details follow:

                                                                         2014                2015
Costs incurred during the year                              $640,000          $1,425,00

Estimated costs to complete, as of december 32       960,000             -0-

Billings during the year                                          420,000          1,680,000

Collections during the year                                    350,000           1,500,000

(a) What portion of the total contract price would be recognized as revenue in 2014? In 2015?

(b) Assuming the same facts as those above except that Hamilton uses the completed-contract method of accounting, what portion of the total contract price would be recognized as revenue in 2015?

(c) Prepare a complete set of journal entries for 2014 (using the percentage-of-completion method).

Reference no: EM131591913

Questions Cloud

Prepare lazaro entry to record the repossession : Lazaro Inc. sells goods on the installment basis and uses the installment-sales method. Due to a customer default, Lazaro repossessed merchandise.
Prepare an income statement for marv corp : Using accounting practices allowed under U.S. GAAP, prepare an income statement for Marv Corp for the year ended
Structure executive compensation packages : What is the simplest way to align the interests to structure executive compensation packages appropriately to encourage managers to act in the best
The market is in equilibrium with the required return : Assume the market is in equilibrium with the required return equal to the expected return.
Portion of total contract price recognized as revenue : (Recognition of Revenue on Long-Term Contract and Entries) Hamilton Construction Company uses the percentage-of-completion method of accounting.
Textbook for information about preparing a rfp : Consult the relevant sections of Chapter 2 and Chapter 3 in the Gido, and Clements textbook for information about preparing a RFP.
Define luxury of consulting a broad spectrum of advisors : compose an official memorandum that will be kept for the record and could potentially be read not only by your Peer Review Committee
Compute the amount of gain or loss from the sale : Assume the equipment was sold on January 1, 2018, for $135,000. Compute the amount of gain or loss from the sale.
When the organization finances are limited : When the organization's finances are limited, education and training expenses are often cut from the budget because:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd